Subject:
pension plans A retirement plan is an arrangement to provide people with an income during retirement when they are no longer earning a steady income from employment. Often retirement plans require both the employer and employee to contribute money to a fund during their employment in order to receive defined benefits upon retirement. Funding can be provided in other ways, such as from labor unions, government agencies, or self-funded schemes. Pension plans are therefore a form of “deferred compensation”. (Wikipedia Feb 2010)
US stock market
By John Schroy, on October 12th, 2006 |

A study by Daniel R. Ackerman, CPA, suggests that Baby Boomers who count on the long-term equity returns of 8% may be disappointed, either because returns are simply not justified, or because, if they are, the supply of equities from Boomers trying to exit the market during retirement will be so great as to depress stock prices.
Reliance on income-based investment, rather than capital gains, may be a more prudent strategy.
Victory for fund managers?
By John Schroy, on August 8th, 2006 |

The Pension Protection Act of 2006 is a major piece of legislation that, like ERISA in the 1970s, will effect capital flows in the US market over the next generation.
Passage of the bill was helped along by heavy lobbying by the mutual fund industry trade organization, the Investment Company Institute.
Although considered favorable to fund managers, the long run impact is still uncertain.
Stock buybacks
By John Schroy, on June 25th, 2006 |

By Q1 2006, stock repurchases by domestic non-financial corporations had multiplied to five times the level of 2000, the peak of the Great Bubble of the 1990s. With buybacks accelerating at an annual rate of 25% throughout 2005, and with net corporate profits after taxes increasing only 5.5% a year, it is now probable, if recent buyback-option trends persist, that by 2009 — the eve of retirement of the Baby Boomer generation — corporate stock buybacks will surpass net corporate profits after taxes.
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